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Concept integration

KUNCHI Group keeps up with the pace of the times and deeply integrates ESG concepts into its corporate development strategy.

We deeply recognize that as an enterprise that adheres to long-termism and takes high quality and sustainable development as its core purpose, the Group's development philosophy is highly consistent with ESG concepts.

Over the years, we have pursued our own development while striving to build harmonious relationships with society, the environment, and our employees, and have achieved remarkable results through continuous actions.

Concept integration

ESG

Environment

Clean Energy Application

The rooftop photovoltaic system in the Changshu Kun Park generates 3.3 million kWh of electricity annually. Of this, 990,000 kWh is used for daily operations, meeting 65% of the warehouse's electricity demand and reducing carbon dioxide emissions by 543.86 tons per year；

The remaining 2.3 million kWh of surplus electricity is fed into the grid, reducing carbon dioxide emissions by 1,265 tons.

Water Resources Management

The Changshu Kun Park is equipped with a 20-ton rainwater storage tank. In 2024, 83 tons of rainwater were recovered and used for landscaping irrigation and road cleaning.

All office locations across the group are equipped with sensor-activated faucets, water-saving toilets, and other water-use devices to reduce domestic water consumption.

Green Operations

We are fully promoting the electrification of forklifts across the entire group’s supply chain；

All warehouses and office locations within the group have fully adopted energy-saving LED lights;

The group has implemented digital approval and electronic signatures and stamping for contract documents, with printing only when absolutely necessary;

Since 2024, we have been promoting carbon-neutral corrugated boxes and switching to FSC-certified boxes. The annual procurement volume accounts for 22% of the total annual corrugated box volume.

ESG | Social

Diversity and Inclusion

The company employs 9 people with disabilities, 70% of whom are female employees. It has also set up a “Mommy's Room” and has Obtained four-star certification from the Shanghai Federation of Trade Unions.

Employee Training and Care

The total duration of employee training throughout the year was 516.12 hours, conducted through the “Force Academy” to cover corporate culture, ESG, skills, and safety training. The HR department and the trade union organized employee benefits and activities based on holidays.

Corporate Philanthropy

From 2021 to 2025, the company donates annually to impoverished villages in Yunnan, with a total amount of 200,000 yuan over the five years. In 2024, Kunchi Group donated 100000 yuan in love funds to the earthquake stricken areas in Gansu.From June to November 2024, the company donated 7,500 sets of cosmetic series and 18,396 individual items, with a total value of 5.1 million yuan.

Corporate Culture / ESG

Since October 2024, the Group's Corporate Communication Department has produced and released the Group's first internal publication, "Boom Summer," and also created an ESG promotional video from the perspective of Kunchi people.

Union Honors

In 2024, the customer service team received the "Model Worker Vanguard" from the Shanghai Federation of Trade Unions and the company was awarded "Model Trade Union" and "Enterprise with Quality Life for Employees - Four Stars" by the Pudong New Area Federation of Trade Unions. In 2025, the customer service team was honored as a "Model Collective" by the Shanghai Municipal Government.

ESG

Governance

Co-creating a Diverse and Inclusive Community

Co-creating a Diverse and Inclusive Community

Since its establishment, KUNCHI has always adhered to the business philosophy of "legal, compliant and reasonable".

The Group has always been committed to cooperating with world-class institutions to continuously draw professional advice and improve governance.

At the end of 2024, a comprehensive evaluation of more than 500 management practice indicators and more than 2,000 data points designed at the underlying level of the group will be conducted through the third-party organization Wind.

The results show that the Group's governance level score is 6.88, and it has obtained a "AA" rating for Wind ESG, ranking second in the industry in the Internet and Retail Catalog.

In June 2025, the Group obtained ISO 45001 & ISO 14001 certification; In July, Kunzhi Supply Chain once again obtained ISO 45001 & ISO 9001 certification.